|
KELLOGG, IDAHO. New Jersey Mining Company
(OTCBB:NJMC) recently completed a non-brokered private placement
for net proceeds of $691,000. The Company sold 1,727,500 units
for $0.40. Each unit consists of one share of common stock
plus one-half of a warrant with each full warrant exercisable
at a price of $0.70 until April 1, 2005.
Proceeds from the placement will be used to install a flotation
circuit at the 100 tonne per day New Jersey mill, mine development
at the Silver Strand mine, and exploration drilling at the
Golden Chest mine and New Jersey mine. A 150 meter exploration
decline at the Golden Chest will also be started this spring.
Engineering work is in progress for the flotation circuit
and most equipment has been ordered. A pole building to house
the flotation circuit is nearly complete. Bids from several
underground mining contractors have been requested for the
Golden Chest decline. Exploration core drilling is expected
to start at the New Jersey mine in March at the Enterprise
and Scotch Thistle prospects. After the completion of this
drilling, the drill will move to the Golden Chest where a
deep drilling program is planned to evaluate the underground
potential for high grade gold veins.
The permitting process with the US Forest Service for the
Silver Strand mine is still underway, and a decision document
from the USFS is expected later this month with a 30 day public
comment period commencing thereafter. A seasonal underground
mining operation of 1,000 tonnes per month is planned for
the Silver Strand. The goal of the plan is to explore and
develop the vein at depth from revenue generated by mining
ore. Reserve calculations from previous drilling and sampling
indicate the ore contains 350 grams per tonne (10.2 ounces
per ton) silver and 5.43 grams per tonne (0.16 ounces per
ton) gold.
New Jersey Mining Company is involved in exploring for and
developing gold, silver and base metal ore resources in the
Coeur d'Alene Mining District of northern Idaho. The Company
has a portfolio of six mineral properties in the Coeur d'Alene
Mining District: the New Jersey mine, the Silver Strand mine,
the Golden Chest mine, the Lost Eagle project, the CAMP project
and the Wisconsin-Teddy project.
Disclaimer: This release contains certain
forward-looking statements within the meaning of the Federal
Securities Laws. Such statements are based on assumptions that
the Company believes are reasonable but which are subject to
a wide range of uncertainties and business risks. Factors that
could cause actual results to differ from those anticipated
are discussed in the Company's periodic filings with the Securities
and Exchange Commission, including its annual report on Form
10-KSB for the year ended December 31, 2003. | 
